Tag Archive for: oilproduction

Ovintiv Inc. is considering a possible sale of its operations in the Uinta basin, which could fetch as much as $2 billion

Ovintiv explores $2 billion Uinta basin business sale to focus on Permian shale operations

Ovintiv Inc. is considering a possible sale of its operations in the Uinta basin. This could fetch as much as $2 billion, people with knowledge of the matter said.

Denver-based Ovintiv is working with an adviser to gauge buyer interest in the asset. The people said they are asking not to be identified discussing confidential information.

Ovintiv’s operations in the Central basin of Utah involve drilling in about 2,600 feet of oil-saturated reservoir rock. This is according to its website. The asset could attract interest from private equity-backed energy groups, the people said.

Deliberations are in the early stages and there’s no certainty they’ll result in a transaction. A representative for Ovintiv declined to comment.

Ovintiv’s shares have fallen 12% over the last 12 months, underperforming the S&P 500 Energy Index and giving it a market value of about $11.2 billion. The company’s assets are spread across Texas, Oklahoma, Utah and Canada.

Selling its Utah assets would free up Ovintiv to focus on the Permian basin, the western hemisphere’s most productive shale fields that straddle Texas and New Mexico, where the driller last year expanded its footprint with a $4.3 billion acquisition from EnCap Investments. The company last year also completed the sale of assets in the Williston Basin of North Dakota for $825 million.

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Source: Oil&Gas 360

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New drilling technology

New drilling technology to put billions of barrels of oil in reach, analysts say

In a groundbreaking development for the oil industry, Chevron has announced a significant advancement in the extraction of crude oil. This is from ultra-high pressure fields of the new drilling technology.

Potentially unlocking up to 5 billion barrels of previously inaccessible resources. This revelation comes as Chevron successfully commenced oil production from its Anchor project. It is where the first well is operating at an unprecedented pressure of 20,000 pounds per square inch (psi). It is a remarkable increase of one-third over any prior well. The significance of this achievement cannot be overstated. This may reshape the landscape of oil production and expand the boundaries of what is currently considered recoverable oil.

The success of the Anchor project represents an investment of $5.7 billion. It provides an attribution to the deployment of cutting-edge technology. The design of the equipment is from industry leaders such as NOV, Dril-Quip, and Transocean. According to Bruce Niemeyer, the head of Americas oil exploration and production at Chevron, the company began pumping oil from the first Anchor well on Sunday. It is with preparations already underway for the activation of the second well. Drilling is ongoing and is nearing readiness. This innovative approach promises to enhance production capabilities and underscores Chevron’s commitment. This will leverage advanced technology to access complex and challenging oil reserves. Ultimately, it will be contributing to the energy security of the United States and the global market.

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Source: Natural Gas World

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US oil and gas

US oil and gas drilling activity sees rebound

The total number of active drilling rigs for oil and gas in the United States rose this week. This is according to new data that Baker Hughes published on Friday.

The total rig count rose by 2 to 586 this week, compared to 669 rigs this same time last year.

The number of oil rigs fell by 1 this week, falling by a single rig in the week prior. Oil rigs now stand at 477—down by 53 compared to this time last year. The number of gas rigs rose by 3 this week to 103, a loss of 28 active gas rigs from this time last year. Miscellaneous rigs stayed the same at 6.

Meanwhile, U.S. crude oil production rose 1 million bpd to 13.3 million bpd for for the week ending July 12. Current weekly oil production in the United States, according to the EIA, is now on par with the all-time high of 13.3 million bpd.

Primary Vision’s Frac Spread Count

Primary Vision’s Frac Spread Count an estimate of the number of crews. It is completing wells that are unfinished, fell in the week ending July 12, from 242 to 238.

Drilling activity in the Permian stayed the same this week at 305. This is a figure that is 28 fewer than this same time last year. The count in the Eagle Ford rose by 1 this week, rising to 49 after falling by 1 rig in the week prior. Rigs in the Eagle Ford are now 8 below where they were this time last year.Oil prices were down sharply on Friday. At 1:10 p.m. ET, the WTI benchmark was trading down $2.13 (-2.57%) on the day at $80.69. The Brent benchmark was trading down $1.99 (-2.34%) on the day at $83.12.

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Source: Oil Price

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The Permian basin is projected to produce around $350B in gross product and provide around 1.2M jobs for the nation’s economy by 2050.

Permian basin contributes over $100 billion, 800,000 jobs on leading US oil and gas production

The Permian basin continues to grow rapidly. It reflects the region’s importance as an economic powerhouse for Texas, New Mexico, and the country.

This year’s Economic Report from the Permian Strategic Partnership (PSP) highlights the region’s essential role in supporting critical government functions. These include road improvements, public schools and teachers, police and fire departments, community hospitals, and universities.

The report also emphasizes the area’s status as the second lowest producer of CO2 emissions per barrel of oil. This is equivalent among the major onshore producing basins worldwide.

As a world leader in oil production, the Permian basin is projected to produce around $350 billion in gross product. It provide around 1,200,000 jobs for the nation’s economy by 2050.

“The Permian basin provides indispensable resources to energy security, making significant contributions to our nation’s robust economy every year,” said Don Evans, Permian Strategic Partnership Chairman.

“As the world’s largest secure energy supply, our region is fundamental to our national, economic, and energy security. Texas and New Mexico can promote further growth and support the American economy in collaboration with the energy industry through investment and expansion of our region’s infrastructure.”

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Source: Oil & Gas 360

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Crude oil production in the Permian Basin is expected to rise by nearly 8% this year. It accounts for nearly half of US crude oil production.

EIA: Permian Basin to help drive record oil production levels in 2024, 2025

According to the U.S. Energy Information Administration (EIA), crude oil production in the Permian Basin, which spans western Texas and southeastern New Mexico, is expected to rise by nearly 8% this year. The basin accounts for nearly half of U.S. crude oil production.

On Tuesday (June 11), the EIA released the June Short-Term Energy Outlook that shows crude oil production in the Permian Basin will average about 6.3 million barrels per day in 2024, up almost 8% from 2023. The increased production in this and other regions will contribute to successive crude oil production records in the United States in 2024 and 2025.

The Energy Information Administration (EIA) has recently introduced an enhancement to its Short-Term Energy Outlook reports by incorporating detailed regional forecasts for the primary oil and natural gas production areas in the United States. This development reflects the agency’s commitment to providing a comprehensive and granular analysis of energy trends across the country. By specifically focusing on key regions such as Appalachia, Bakken, Eagle Ford, Haynesville, and Permian, the EIA aims to offer stakeholders, policymakers, and industry experts a more nuanced understanding of the dynamics shaping the energy landscape at a local level.

Inclusion of Regional Forecasts

The inclusion of these regional forecasts not only enables a more detailed assessment of production trends. Moreovre, it also facilitates a deeper exploration of factors influencing supply and demand dynamics in specific geographic areas. This new approach underscores the EIA’s dedication to delivering insights that support informed decision-making. The strategic planning within the energy sector is also seen. This sheds light on regional variations in oil and gas production. Also, the EIA’s expanded Short-Term Energy Outlook reports serve as a valuable resource for industry professionals. More are now seeking to navigate the complexities of the US energy market with greater precision and foresight.

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Source: TB&P

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Macquarie models U.S. production exiting 2025 at about 14.5 MMbpd, despite expectations for significantly lower crude prices.

US oil production to hit record amidst declining costs, drilling efficiencies

U.S. oil production is set to end the year at a record pace of about 14 MMbpd as falling costs and better drilling efficiency overshadow low growth plans from publicly note down companies, Macquarie Group Ltd. analysts said in a note.

Macquarie be on one’s feet out among analysts last year with its projection of surge U.S. shale production and ultimately show to be true or correct. Its latest forecast comes as shale-oil operators are vowing to rein in production growth for a fourth straight year and consolidation in the industry presents headwinds to further growth. The U.S. government expects production to edge up to 13.2 MMbpd this year.

According to Macquarie’s projections, U.S. production is expect to reach approximately 14.5 million barrels per day by the year 2025. This forecast holds true even in the face of expectations for notably reduced crude prices. The modeling conducted by Macquarie suggests that despite the challenging market conditions and potential price fluctuations, the United States will continue to maintain a robust level of oil production in the coming years.

The prediction of U.S. production levels remaining steady at 14.5 million barrels per day by 2025 serves as a testament to the resilience and adaptability of the domestic oil industry. Despite the volatile nature of the market and the potential for lower prices impacting production, Macquarie’s analysis indicates a strong outlook for oil output in the United States. This projection not only underscores the nation’s significant role in the global oil market but also highlights the strategic planning and operational efficiency of U.S. oil producers in navigating challenging economic conditions.

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Source: Oil & Gas 360

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A surge of supply from non-OPEC nations like US, Brazil, and Guyana has surprised oil markets this year.

No matter how much OPEC cuts oil production, other countries will ‘fill the hole,’ trader says

Despite efforts by Saudi Arabia and Russia to prop up crude prices by cutting production, countries like Guyana, Brazil and the US have pumped more oil than ever.

That supply is now so strong that even if OPEC+ slashes more production, the spigot of oil from non-members will continue to douse the market.

“I think it’s more of a supply story going into 2024,” Rebecca Babin, senior equity trader for CIBC Private Wealth, told CNBC on Monday. “There’s a lot of fear that no matter what OPEC does, no matter how much they cut, there are producers — non-OPEC producers — that are just going to fill the hole they keep digging.”

She added, “We’re looking at 2024 and we’re concerned that the market is actually going to end up being oversupplied.”

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Source: yahoo!finance

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